Textron (TXT) to Acquire Beechcraft for $1.4 Billion

Shares of Textron Inc. (TXT) closed up +0.20 or +0.56 percent on Thursday to $36.20 per share ahead of the company reporting it would acquire Beech Holdings LLC, parent company of Beechcraft Corporation for $1.4 in an all-cash deal. The stock traded up to $37.00 in afterhours trading after the takeover was announced. The agreement will include the repayment of Beechcraftâ s working capital debt and will be financed by Textron with available cash and as much as $1.1 billion in new debt.

The former Hawker Beechcraft filed for Chapter 11 bankruptcy in May of 2012 and left court protection through a $600 million exit financing deal with JP Morgan Chase (JPM) in January of 2013. Textron expects the acquisition to be complete by early next year.

Providence, Rhode Island based Textron Inc. is a U.S. conglomerate originally started in Boston as a textile company in 1923 called the Special Yarns Corporation. Over the years, the company branched out into other industries and is presently best known for owning Cessna Aircraft and Bell Helicopter. Wichita, Kansas based Beechcraft exited the jet business after filing for bankruptcy but continues manufacturing turboprops, and piston-powered aircraft. In addition to commercial aircraft, Beechcraft has extensive defense contracts, making military training aircraft for the US Air Force and the US Navy. Textronâ s acquisition will add to the companyâ s line of propeller driven aircraft made by its Cessna subsidiary. In Textronâ s press release announcing the deal, Textron Chairman and CEO Scott C. Donnelly said, â

Published on Dec 27, 2013

By Jay Hawk

Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.